Posts Tagged Maintenance
70 Billion Euro Wastage Due to Maintenance
September 26th, 2011 | Thema: Publications
by Nils Blechschmidt
Companies waste billions due to inefficient maintenance management. Projected onto the direct maintenance costs of 450 billion Euros in all European production plants, a savings potential arises of around 70 billion Euros a year. Alone in Germany 14 billion Euros are spent too much on maintenance every year. This is proved by the current ConMoto study “Value Oriented Maintenance – The strategic dimension of the spanner”. Considering only business assets in production facilities and related machinery, out of all investment goods in Europe, a value of around 9.7 trillion Euros in 2008 is reached. Alone in Germany the equipment replacement value amounted to about 1.9 trillion Euros. Calculating cross sector maintenance cost rate of 4.8 %, direct maintenance costs in European production locations add up to over 4.5 billion Euros per year. This study confirms impressively that quick and sustainable successes are realizable. One of the central cost effectiveness Key Performance Indicators (KPIs), the maintenance cost rate, was on average reduced by 23 % for all projects. Projected onto the influenceable maintenance cost of 300 billion Euros a savings potential of circa 70 billion Euros would arise in Europe. Thus alone in Germany 14 billion Euros are spent too much on maintenance services. And in this, the drastically falling costs of production down-time are not considered. read more [...]
“One-Stop-Shop” for maintenance specialists and plant operators
January 13th, 2011 | Thema: Events, Press releases
Abu Dhabi, January 2011 – ConMoto Consulting Group is the main sponsor of the 4th Annual Summit “Plant Maintenance in the Middle East” initiated by the World Refining Association in Abu Dhabi from 16th to 19th January 2011. (http://www.wraconferences.com/2/4/articles/107.php) Being the only platform for the exchange of experiences dedicated specifically to the downstream sector, the event focuses on technical and strategic maintenance issues as well as on the role of health, safety and environment (HSE) at a company level. In its presentation “Best practice oriented, interactive optimization of maintenance activities between production and maintenance” ConMoto uses a case study to point out futureoriented risk and reliability based maintenance strategies and systematic approaches in the area of people involvement and implementation. Furthermore the lecture provides food for thought for an optimal budget and resources management as well as for the reduction of maintenance costs together with a simultaneous increase of the Overall Equipment Effectiveness. “As part of our superior Lean philosophy we understand Value Oriented Maintenance as a strategic factor for success” says Nils Blechschmidt, Senior Partner with the ConMoto Consulting Group. “The latest ConMoto study ‘Value Oriented Maintenance – The strategic dimension of the spanner’, which we are going to publish in the 1st quarter of 2011, shows, that numerous enterprises are still far away from Maintenance Excellence these days. Hence there is a need for action to be taken.” Read press release
More maintenance efficiency
June 1st, 2010 | Thema: Projects
Maintenance expenditure is a significant cost factor in production that is continually gaining in importance through increasing technical complexity and a rising degree of automation. Throughout the EU annual direct maintenance costs amount to 1,500 billion euros. This impressive amount is greatly exceeded by indirect maintenance costs, which are caused by technical breakdowns. Indirect costs are around 5 times as high at 7,500 billion euros.
A current investigation of maintenance management in the chemical industry by the ConMoto Consulting Group produced a surprising result: in investment intensive and safety sensitive chemicals production, total maintenance costs are considerably higher than is necessary. Weaknesses in maintenance management can be found, for example, in the maintenance strategy, time management and planning, and in external services management. “Using a risk and availability based maintenance system, the maintenance cost rate falls by up to a third, because, for example, cost intensive unplanned repairs can be almost halved,” says Nils Blechschmidt, Senior Partner of the ConMoto Consulting Group.